Friday, October 21, 2011

Greece’s economy has deteriorated so severely in the last three months that international lenders would have to find €252bn in bail-out loans through the end of the decade unless Greek bondholders are forced to accept severe cuts in their debt repayments.

The dire analysis, contained in a “strictly confidential” report by international lenders and obtained by the Financial Times, is more than double the €109bn in European Union and International Monetary Fund aid agreed just three months ago.

Is it any wonder the Germans aren't too happy about writing a blank check. Double your fun in just 3 months. What will a year bring?

Why anyone would ever lend money to Greece is beyond me. Why they were ever let into the Eurozone is an even bigger mystery. (Budgetary shortfalls were to be no more than 3% of GDP. Greece saw deficits nearly twice that large even in good times.)

And although they just voted for more austerity measures, they haven't managed to implement the last batch they voted on.

The deterioration in Greece’s financial situation described in the troika’s debt analysis report is deep and across the board, and Greece is likely to be forced to rely on bail-out loans to finance its operations through at least 2021.

The much-touted Greek privatisation programme, which was expected to bring as much as €66bn in cash to help pay down debt, is now expected to bring in €20bn less, and lenders are now assuming that the Greek government will continue to lag in implementing repeatedly-promised austerity measures.

It is easy to say whatever you want to say. Actually doing things is a bit harder.

No comments:

Search This Blog

Unfortunately Photobucket has decided to be a bunch of weasels and remove support for Blogs with NO warning. You will find many broken image links because of that. Not much I can do now. See you at the New Blog.

All opinions expressed on this weblog are those of the author.
The author's opinions do not represent those of her employers.
All original material is copyrighted and property of the author. Steal it and I might sue your ass. Other info is probably copyrighted by someone else.

Opinions in the Comments/Trackback are not mine, so if you have a problem with those, take it elsewhere.

Anyone mentioned in relation to a crime is innocent until
proved guilty in a court of law.

Contact: zendodeb AT gmail.com
All e-mails are presumed to be for publication on the site unless otherwise indicated.
All comments are subject to deletion or revision should the author find them offensive. Trolling is not tolerated.
disclaimer modeled on that of (ripped off from) A Small Victory